Construction of the Rheinmetall ammunition plant in Baisogala launched with an official ceremony
The joint German-Lithuanian 155-mm artillery ammunition plant near Baisogala is scheduled to commence operations by the end of 2026. This strategic facility will bolster Lithuania’s defence industry capabilities and contribute to ensuring national security. Today, 4 November, Minister of Energy Žygimantas Vaičiūnas took part in the symbolic ceremony marking the commencement of construction of the plant.
During the ceremonial launch, President of the Republic of Lithuania Gitanas Nausėda, Prime Minister Inga Ruginienė, Minister of Economy and Innovation Edvinas Grikšas, Minister of Energy Žygimantas Vaičiūnas, EPSO-G Group CEO Mindaugas Keizeris, and Rheinmetall CEO Armin Papperger symbolically marked the start of construction work on the facility.
“Energy goes beyond the boundaries of this sector. Today, energy security and national security are two inextricably linked areas. The EPSO-G Group has demonstrated its leadership by implementing strategic energy projects, such as the synchronisation with the continental European network, and is now doing so again by participating in a project of significance for both Lithuania’s and Europe’s security, while also integrating renewable energy,” says Minister of Energy Žygimantas Vaičiūnas.
According to Minister Vaičiūnas, attracting industry like this is important not only for national security and the economy, but also for the energy sector, as it contributes to the development of renewable energy sources (RES) - the plant is energy-intensive, and higher electricity consumption helps to drive the expansion of RES. When developing the project, a key objective was to produce at least part of the electricity on-site. This year, a memorandum was signed on the use of RES for the plant’s needs. Plans are already under way to install a 2 MW solar farm nearby, with the possibility of adding electricity storage systems to be considered in the future.
The new energy group EPSO-G and the companies Valstybės Investicinis Kapitalas and Giraitės Ginkluotės Gamykla are also participating in the construction project for the plant, which will be operated by Rheinmetall Defence Lithuania. According to EPSO-G CEO Mindaugas Keizeris, this demonstrates strong cooperation between state-owned enterprises in implementing strategic goals.
“As a state‑owned energy group, we feel a responsibility to contribute to Lithuania’s resilience not only in the energy sector, but also in the defence industry. With this project, we are applying our accumulated experience in implementing strategic‑level energy and security infrastructure projects,” says Mr Keizeris.
In December of last year, representatives of Rheinmetall, EPSO‑G Invest, and Giraitės Ginkluotės Gamykla officially signed a shareholders’ agreement to implement the investment by Rheinmetall Defence Lietuva, which will build the 155-mm artillery ammunition plant. The agreement stipulates that 51 per cent of the shares in Rheinmetall Defence Lietuva will be held by Rheinmetall, 48 per cent – by EPSO‑G Invest, and 1 per cent – by Giraitės Ginkluotės Gamykla.
The plant near Baisogala is expected to begin operations at the end of 2026, and will be capable of producing tens of thousands of 155-mm calibre artillery shells annually. It is tentatively planned to invest up to EUR 300 million in the plant. The facility is expected to create at least 150 new jobs in the region.
The EPSO-G Group consists of the management company EPSO-G and six directly controlled subsidiaries: Amber Grid, Baltpool, Energy Cells, EPSO-G Invest, Litgrid and Tetas. EPSO-G and its group companies also hold shares in GET Baltic, Rheinmetall Defence Lietuva, Baltic RCC OÜ and TSO Holding AS. The rights and duties of the sole shareholder of EPSO-G are exercised by the Ministry of Energy.
Last updated: 10-11-2025
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